Rainmaker -
You mentioned the August Smart Money article. I've reposted below excerpts from the article from my original post on July 22 (btw, it wasn't me who found the article, I just happened to post from it). Anyway, it's interesting to note, especially after you pointed out the horrifying declines of 4 of the 5 stocks, that Smart Money, with guidance from Chip Morris of T. Rowe Price's Science & Technology Fund, liked these companies not only because they were attractive takeover candidates, but also because they were in good shape even if not taken over. Interesting.
SmartMoney article
A few days ago, someone on the thread mentioned an article in the August issue of SmartMoney magazine. Looks like the article hit Dow Jones newswires yesterday morning.
Basically, it involves a discussion with T. Rowe Price Science & Technology fund manager Chip Morris, who talks about Lucent's (possible) October buying spree to help them back up their intent to become one of the top two data-communication-equipment companies. The article says that the volume of data communication over telecom networks is expected to be five times that of voice communication (as a side note, I believe Rainmaker mentioned PAIR's transition to a data company recently).
Morris expects that Lucent will "rattle off a slew of deals" as soon as it can. He also thinks that Erricson, Motorola, Nokia and NorTel will make preemptive strikes. Also, Cisco is a player.
SmartMoney's list of candidates for prospective takeovers is: ADTN, AFCI, ADI, PAIR, XYLN.
Here's there blurb on PAIR: 'At 16.50, PairGain was trading at just 17.2 times its '99 earnings, which is a big discount to its projected long-term growth rate of 27%. As we noted earlier (when they discussed ADTN), PairGain is involved in a price war with Adtran. But PairGain has been easing its dependence on the Baby Bells by courting international telephone companies.'
Bobby G
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